Public and private auctions, whether live, conducted on-line or in some combination are useful for selling items given sufficient interest and attendance. Auctions are by nature of limited duration and in general, an item will sell at an auction just higher than the second highest level of interest in the item, since this is the minimum that the person with the highest level of interest needs to pay. Thus, a seller wanting to maximize the sale price of an item at an auction should insure significant promotion and attendance at the auction. Specific items with a low level of interest during the time period of the auction may sell at an undesirably low price, or fail to meet a reserve price and not sell. Thus, unless there is urgency to selling an item, an auction is an unsatisfactory method for disposing of certain items.
A traditional sale with a fixed known price can alternatively be used for selling items in individual sales when there is no urgency to dispose of items. This is particularly the case with items of fine art that may be unique one-of-a-kind items. Unless and until a seller reaches a level of interest in an item higher than or equal to the offered price an item will not sell. However, a traditional sale typically requires that the seller announce publicly an acceptable price for an item independent of any interest or commitment on the part of a buyer. In this sense, whether or not an item will sell in completely under the control of the buyer. A seller may change the price at any time, but a traditional sale does not afford the seller the benefit of concealing the price at which an acceptable transaction can take place.
Some of the disadvantages of auctions and traditional sales are overcome with a combination of auctions with sales. One method for combining sales with auctions is the “Buy It Now” feature available on the EBAY auction system. Under this system, an item is available for purchase at a specified price during the auction period before the first successful bid. The “Buy It Now” feature does not distinguish between an auction phase and a non-auction phase, except that the “Buy It Now” option is only available until the first successful bid is accepted. Also, the price at which the item can be bought is known to all potential buyers. Finally, the “Buy It Now” price cannot be changed during the auction.
What is needed is an improved method for selling items in which the seller is given maximum flexibility, items can be offered over long periods of time without the disadvantages of an auction and prices can be concealed from potential purchasers.